CGT tax now on Shares in Self Managed Super

Buying and selling shares will have new handling rules with Capital Gains Tax applying in super funds and SMSFs. Shares will be treated as Capital items rather than trading stocks in SMSF’s. The changes apply from 7:30pm May 10 2011.

Matt Woodington of Financial Standard  reports:

The government has moved to prevent superannuation funds, including SMSFs, from aggressively trading shares by making any resulting gains and losses subject to capital gains tax.

The removal of the exception for super funds trading stocks, primarily shares, units in a trust and land, comes into effect immediately.

The measure will be introduced to reduce speculative trading by super funds including SMSFs, encouraging a reduction in fees and risks associated with trading a high volume of stocks.

The government is looking to reduce the risk being placed on member portfolios by promoting a more stable long-term investment policy among super funds. SMSFs could also be implicated. 

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Self-Managed Superannuation Service Providers in Australia. SuperBenefit provides a wholistic SMSF assistance, education and administration service continuum - 1. “assistance” is help of whatsoever nature where our overall SMSF experience and knowledge enables us to provide assistance/help without any legal (or “license”) limitations. 2. “education” involves providing knowledge through teaching, coaching and mentoring about all matters SMSF, including (but not limited to) investment issues such as equities and property, 3. “administration” encompasses all admin aspects of legally required SMSF trustee and member record keeping including (but not limited to) audit and ATO matters. In keeping with our key point that SuperBenefit does not provide Financial Advice, where issues arise from 1, 2, and/or 3 above Indicate a need for a legally authorized provider (such as a Financial Adviser) and the client does not have their own service provider, the client can utilize SuperBenefit’s ‘Connect Assist’ … SuperBenefit, in itself, does not provide Financial Advice, but it does provide the wherewithal for great SMSF service. WE do not provide Financial Advice or any other service that requires a legally authorized provider. However, where such advice or service is required we have our ‘Connect Assist’, a SuperBenefit resource we use to connect clients to a Licensed Advisor or other legally authorised service provider. Call us 0407 361 596, no obligation FREE Connection call to see how we can help you!
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